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David Jones’ Bourke Street Mall Store to Close
David Jones is closing its menswear store on Bourke Street, Woolworths Holdings has said.
Woolworths Holdings, owned by South African retail giant, said it would be selling the store at 299 Bourke Street Mall, which currently holds the menswear department.
While this store closes, DJ’s as plans to revamp the store that sits behind it.
“The sale of 299 Bourke Street will allow us to deliver a more integrated retail experience to customers in Melbourne’s CBD,” explained Ian Moir, the Chief Executive of Woolworths Holdings.
The conglomerate aims to have the property sold by January 2021, as it begins the refurbishment of its flagship store on the opposite side of Bourke Street.
The refurbished space will still include menswear, in an increased floor space and a ‘greater emphasis’ on luxury goods. “A single-store flagship housing the best local and international brands in one world-class destination will create a more seamless and cohesive experience for our customers,” Mr Moir continued.
David Jones’ profits have dropped 42 per cent, despite the unveiling of its new Sydney flagship store. In an announcement by Woolworths Holdings, the brand made just $37 million operating profit for the year ending June 30, which is down from $64 million last year.
Despite online sales going up, the department store is planning to close several stores in order to restore its earnings. According to the retailer, it will focus its attention on online sales, and will ‘reduce the number of floors’ in brick-and-mortar stores, as well as negotiate with landlords to ‘deliver a business that is viable, profitable and smaller [in terms of space]’.
“We’ve got to get less stores and less space in the lower demographic areas, we’ve got to exit any marginal or undesirable leases,” said Mr Moir.
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